Interesting article on U.S. Tipping

[Jcp2]

Can you explain better? I am really interested to learn how these things work in other countries!
When back to office, do you have to compile a "reimbursement list", attaching the receipts?
Or you get simply an additional daily wage when working away?
In the latter case, this additional wage is being taxed, or is still treated as tax-exempt reimbursement?
For your info: here in Italy wine or beer (or coke, or coffee, or other drinks) are reimbursed, if included in the same bill as the meal. They are not included if consumed away from meals.
You can be reimbursed in two ways: with the reimbursement list, providing proof-of-purchase with fiscal bills, and with a max cost for each of the two allowed meals per day, or with a "diaria", an additional fixed additional wage, which is fixed but country-dependent. In the latter case, this additional wage is subject to marginal tax (which can be well in excess than 50%).

I submit itemized receipts which I pay out of pocket ahead of time. If they are approved, then the amount is added into my paycheck at the next pay interval as expense reimbursement, which is not taxable income to me. I assume that the company allocates this as an expense of doing business on their part and writes it off against revenue. The business that I spent the money on receives this as revenue, which could be potentially taxed as income depending on how they do for the year.

 

[Lorenzoid]

I never entered into any such social contract therefore it is invalid. Being asked to enter a contract under duress is also not valid. Show me anywhere on any bill that there is such a social contract that customers have agreed to.

Social contract - Wikipedia

en.wikipedia.org

 

[Bob DBF]

Being an American in the US, I tip for good service at a restaurant, if deserved, and at a bar for prompt service, when needed.

As far as avoiding taxes, the IRS assumes 8% on tipped positions, and requires the taxpayer to log their tips and report them to the employer ror exclusion on their W2. Although tips can and have been used for tax evasion, computers are very good on estimating what tip revenue should be made in any venue, and variation may be audited with a presumption of guilt.

 

[brsnow]

Being an American in the US, I tip for good service at a restaurant, if deserved, and at a bar for prompt service, when needed.

As far as avoiding taxes, the IRS assumes 8% on tipped positions, and requires the taxpayer to log their tips and report them to the employer ror exclusion on their W2. Although tips can and have been used for tax evasion, computers are very good on estimating what tip revenue should be made in any venue, and variation may be audited with a presumption of guilt.

Yes, back in the day paychecks were typically zero and taxes owed when I filed. Pretty strict claiming rules and many pay by credit card these days which are obviously claimed in full.

 

[Angelo Farina]

Thanks for the answers. Very useful. I like this thread, I am learning a lot!
Regarding how tipping culture did develop, I have another question: is tipping being taught to children? How and where? At school or by parents?
Is the required math (calculating percentages) a typical topic during lessons in elementary school?
What about teaching the ethics of tipping? How is this presented to children?
These possibly can look as obvious or stupid questions to some of you, but please accept that there are many places where tipping is very badly recognized, and children are simply taught that expecting a tip for your work is a bad thing, and giving a tip for getting a better service is very close to bribing and fundamentally unjust, causing a better service to the rich, who can afford generous tipping.
So for us this "tipping culture" is really very hard to understand, particilarly for its social background and ethics.
Thanks in advance for the answers...

 

[Jcp2]

In my experience, wealthy customers can be really poor tippers. Those that have worked tip dependent service jobs tend to be more generous. I don’t go to places where the tip will make or break my budget; I’ll go someplace with a less expensive rack price because I build the tip into the cost of the meal ahead of time.

 

[Bob DBF]

Is the required math (calculating percentages) a typical topic during lessons in elementary school?
What about teaching the ethics of tipping? How is this presented to children?

If it isn't done by parents it's not likely done at all. Of course that could be said of any education here and now.

 

[greeniguana]

In my experience, wealthy customers can be really poor tippers. Those that have worked tip dependent service jobs tend to be more generous.

100% true.

I waited tables and bar tended in a restaurant frequented by professional athletes. Nobody wanted them in their station.

However, when colleagues from a competing establishment came in, we treated them like royalty.

I also loved working the smoking section. Smokers were very always very generous and laid back.

 

[brsnow]

Many kids eat at restaurants with their families, older kids work in restaurants, it is a societal norm, doesn’t really need to be fought.

 

[brsnow]

In my experience, wealthy customers can be really poor tippers. Those that have worked tip dependent service jobs tend to be more generous. I don’t go to places where the tip will make or break my budget; I’ll go someplace with a less expensive rack price because I build the tip into the cost of the meal ahead of time.

Seems to be scuba divers don’t like to tip at all;-)